MIRA INFORM REPORT

Report No. :	313033
Report Date :	19.03.2015

IDENTIFICATION DETAILS

Name :	MERLINHAWK AEROSPACE PRIVATE LIMITED

Registered Office :	No.783, 10^th Main Road, 34^th “A” Cross, Jayanagar, Bangalore – 560 011, Karnataka

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	23.10.2002

Com. Reg. No.:	08-031147

Capital Investment / Paid-up Capital :	Rs. 15.850 Million

CIN No.: [Company Identification No.]	U73100KA2002PTC031147

IEC No.:	Not Available

TAN No.: [Tax Deduction & Collection Account No.]	BLRM04940F

PAN No.: [Permanent Account No.]	Not Available

Legal Form :	Private Limited Liability Company

Line of Business :	Subject is engaged in Aerospace Engineering.

No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 160000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. There seems sharp dip in the profit of the company during FY 2014, borrowing recorded by the company are also huge. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED BY

Name :	Ms. Bhargavi
Designation :	Assistant Manager
Contact No.:	91-80-42410410
Date :	18.03.2015

LOCATIONS

Registered Office :	No.783, 10^th Main Road, 34^th “A” Cross, Jayanagar, Bangalore – 560 011, Karnataka
Tel. No.:	91-80-42068329
Fax No.:	91-80-41104200
E-Mail :	ram@merlinhawk.com Marketing / Customer Support: vinay@merlinhawk.com Services: suresh_n@merlinhawk.com merlin@vsnl.com kvvenky@merlinhawk.com sales@merlinhawk.com finance@merlinhawk.com
Website :	http://www.merlinhawkaerospace.com www.merlinhawk.com

Head Office :	57/5, 6^th Cross, Tank Bund Road, N.S. Palya, BTM Layout II Stage, Bangalore – 560 076, Karnataka, India
Tel. No.:	91-80-26784574/ 42410410/ 26783227
Fax No.:	91-80-26785291
Email :	sales@merlinhawk.com

Overseas Office :	Merlinhawk Asia Pacific Sdn. Bhd. 8 - 1, Jalan USJ 1 / 1B, UEP Subang Jaya, Selengor, Darul Ehsan, Malaysia
Tel. No.:	+ 603 8024 8450
Fax No.:	+ 603 8024 8470
E-Mail :	steve@merlinhawk.com.my

Branch Office :	Hyderabad 1-8-505/11/2, Ground Floor, Prakash Nagar, Begumpet, Hyderabad – 500016, Teleangana, India Tel No : 91-40-27760175 Fax No.: 91-40-2760176 New Delhi # 243/1, Masjid Moti (1^st Floor), South Extension Part II, N?Ew Delhi – 110049, India Tel No : 91-11-41016312/315 Fax No.: 91-11-41016326

DIRECTORS

As on 29.09.2014

Name :

Mr. Ramineni Ramachandra Rao

Designation :

Director

Address :

No. 1108, HSR Layout 7^th Sector, 18^th cross 9^th main, 7^th Phase, 7^th stage, Bangalore – 560034, Karnataka, India

Date of Birth/Age :

18.07.1959

Date of Appointment :

23.10.2002

DIN No.:

00226945

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999KA1987PTC008325	MERLINHAWK ASSOCIATES PRIVATE LIMITED	Director	30/04/1987	30/04/1987	-	Active	NO
2	U72900KA2000PTC027602	TERRADUNE TECHNOLOGIES PRIVATE LIMITED	Director	10/08/2000	10/08/2000	-	Active	NO
3	U85144KA2000PTC027601	BROWNDOVE HEALTHCARE PRIVATE LIMITED	Director	10/08/2000	10/08/2000	-	Active	NO
4	U72200KA2002PTC030828	TERRADUNE SCIENCES PRIVATE LIMITED	Director	29/07/2002	29/07/2002	-	Active	NO
5	U73100KA2002PTC031147	MERLINHAWK AEROSPACE PRIVATE LIMITED	Director	23/10/2002	23/10/2002	-	Active	NO
6	L74100AP1999PLC031191	STEEL EXCHANGE INDIA LIMITED	Director	30/09/2006	30/01/2006	-	Active	NO
7	U51909KA2006PTC041336	MERLINHAWK ENGINEERING PRIVATE LIMITED	Director	29/12/2006	29/12/2006	-	Active	NO
8	U74140KA2010PTC053130	MADAKSIRA VINEYARDS PRIVATE LIMITED	Director	06/04/2010	06/04/2010	-	Active	NO

Name :

Mr. Linganna Rajanna

Designation :

Director

Address :

Vypress 504 St. Johnswood Apartment, 80 St. Johns road, Chicka Audogodi, Bangalore – 560029, Karnataka, India

Date of Birth/Age :

05.01.1953

Date of Appointment :

23.10.2002

DIN No.:

00473673

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72900KA2000PTC027602	TERRADUNE TECHNOLOGIES PRIVATE LIMITED	Director	10/08/2000	10/08/2000	-	Active	NO
2	U85144KA2000PTC027601	BROWNDOVE HEALTHCARE PRIVATE LIMITED	Director	10/08/2000	10/08/2000	-	Active	NO
3	U74999KA1987PTC008325	MERLINHAWK ASSOCIATES PRIVATE LIMITED	Director	16/08/2000	16/08/2000	-	Active	NO
4	U72200KA2002PTC030828	TERRADUNE SCIENCES PRIVATE LIMITED	Director	29/07/2002	29/07/2002	-	Active	NO
5	U73100KA2002PTC031147	MERLINHAWK AEROSPACE PRIVATE LIMITED	Director	23/10/2002	23/10/2002	-	Active	NO
6	U51909KA2006PTC041336	MERLINHAWK ENGINEERING PRIVATE LIMITED	Director	29/12/2006	29/12/2006	-	Active	NO
7	U35301KA2005PTC037739	THORNWOOD AVIATION PRIVATE LIMITED	Additional director	24/11/2014	24/11/2014	-	Active	NO

Name :

Mr. Krishnaswamy Arni Gopalaswamy

Designation :

Director

Address :

3B Vatsalya Apartments, I Cross, 17^th Main, J.P. Nagar, 2^nd Phase, Bangalore – 560075, Karnataka, India

Date of Birth/Age :

26.07.1955

Date of Appointment :

06.12.2005

DIN No.:

00193622

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999KA1987PTC008325	MERLINHAWK ASSOCIATES PRIVATE LIMITED	Director	30/04/1987	30/04/1987	-	Active	NO
2	U72900KA2000PTC027602	TERRADUNE TECHNOLOGIES PRIVATE LIMITED	Director	10/08/2000	10/08/2000	-	Active	NO
3	U85144KA2000PTC027601	BROWNDOVE HEALTHCARE PRIVATE LIMITED	Director	10/08/2000	10/08/2000	-	Active	NO
4	U73100KA2002PTC031147	MERLINHAWK AEROSPACE PRIVATE LIMITED	Director	06/12/2005	06/12/2005	-	Active	NO
5	U27310KA2001PTC028832	IBEX ENGINEERING PRIVATE LIMITED	Director	03/02/2006	03/02/2006	-	Active	NO
6	U27310KA2006PTC039658	HCM IBEX ENGINEERING PRIVATE LIMITED	Director	08/06/2006	08/06/2006	-	Active	NO
7	U51909KA2006PTC041336	MERLINHAWK ENGINEERING PRIVATE LIMITED	Director	29/12/2006	29/12/2006	-	Active	NO

KEY EXECUTIVE

Name :	Ms. Bhargavi
Designation :	Assistant Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2014

Names of Shareholders	No. of Shares	%age
Ramineni Ramachandra Rao	75000	4.73
Bhuvaneshwari Krishnaswamy	75000	4.73
Merlinhawk Associates Private Limited, India	1365000	86.12
Merlinhawk Engineering, India	70000	4.42
Total	1585000	100.00

As on 29.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	90.54
Directors or relatives of Directors	9.46
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in Aerospace Engineering.

Products :	Avionic Products Airbome Ground Support Equipment Application Software Integrated Test Equipment Test Jigs

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :	Not Divulged

Imports :	Not Divulged

Terms :	Not Divulged

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Banker Name	The Karnataka Bank Limited
Branch Address	Overseas Branch, St Marks Road, Bangalore – 560001, Karnataka, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWING
Overdraft with bank	42.281	34.759
Other loans from banks	48.063	18.650
Loan from related parties	5.824	0.000

Total	96.168	53.409

Auditors :
Name :	Ajs and Associates Chartered Accountants
Address :	313-314, Richmond Towers 12, Richmond Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-22219261/2
Fax No.:	91-80-22217293
E-Mail :	office@ajsca.com
PAN No.:	AAJHS9387R

Memberships :	Not Available

Collaborators :	Not Available

Associates :	Merlinhawk Engineering Private Limited Terradune Sciences Private Limited Browndove Healthcare Private Limited Ibex Engineering Private Limited

Subsidiaries :	Merlinhawk Asia Pacific Sdn. Bhd.

Holding company :	Merlinhawk Associates Private Limited

CAPITAL STRUCTURE

As on 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

2,000,000	Equity Shares	Rs.10/- each	Rs. 20.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

1,585,000	Equity Shares	Rs.10/- each	Rs. 15.850 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	15.850	15.850	15.850
(b) Reserves & Surplus	40.720	40.315	34.640
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	56.570	56.165	50.490

(3) Non-Current Liabilities
(a) long-term borrowings	43.961	48.580	16.210
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	5.322	5.432	2.564
Total Non-current Liabilities (3)	49.283	54.012	18.774

(4) Current Liabilities
(a) Short term borrowings	96.168	53.409	46.204
(b) Trade payables	41.853	15.014	5.778
(c) Other current liabilities	18.467	22.641	9.797
(d) Short-term provisions	9.245	10.206	3.521
Total Current Liabilities (4)	165.733	101.270	65.300

TOTAL	271.586	211.447	134.564

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	31.490	32.903	34.287
(ii) Intangible Assets	0.357	0.414	0.624
(iii) Capital work-in-progress	56.923	40.144	0.954
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	6.327	6.327	6.327
(c) Deferred tax assets (net)	1.691	1.469	0.881
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	5.244	3.468	4.458
Total Non-Current Assets	102.032	84.725	47.531

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	92.751	12.461	20.810
(c) Trade receivables	59.485	107.176	57.399
(d) Cash and cash equivalents	11.686	3.885	5.494
(e) Short-term loans and advances	1.463	1.293	1.467
(f) Other current assets	4.169	1.907	1.863
Total Current Assets	169.554	126.722	87.033

TOTAL	271.586	211.447	134.564

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	TURNOVER	132.800	174.371	140.651

Less	EXPENSES
	TOTAL	NA	NA	NA

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	2.965	11.093	7.620

Less/ Add	DEPRECIATION/ AMORTISATION	2.266	2.846	3.519

	PROFIT/ (LOSS) BEFORE TAX	0.699	8.247	4.101

Less	TAX	0.295	2.572	1.819

	PROFIT/ (LOSS) AFTER TAX	0.404	5.675	2.282

	EARNINGS IN FOREIGN CURRENCY	58.270	63.141	41.693

	IMPORTS
	Components and Stores parts	106.013	46.756	32.721
	TOTAL IMPORTS	106.013	46.756	32.721

	Earnings / (Loss) Per Share (Rs.)	0.26	3.58	1.50

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.30	3.25	1.62

Return on Total Assets (PBT/Total Assets}	(%)	0.34	5.15	3.24

Return on Investment (ROI) (PBT/Networth)		0.01	0.15	0.08

Debt Equity Ratio (Total Debt /Networth)		2.48	1.82	1.24

Current Ratio (Current Asset/Current Liability)		1.02	1.25	1.33

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	15.850	15.850	15.850
Reserves & Surplus	34.640	40.315	40.720
Net worth	50.490	56.165	56.570

long-term borrowings	16.210	48.580	43.961
Short term borrowings	46.204	53.409	96.168
Total borrowings	62.414	101.989	140.129
Debt/Equity ratio	1.236	1.816	2.477

]YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	140.651	174.371	132.800
		23.974	(23.841)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	140.651	174.371	132.800
Profit	2.282	5.675	0.404
	1.62%	3.25%	0.30%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Loans and advances from related parties	25.690	28.014
Other loans and advances	18.805	20.566

Total	44.495	48.580

Corporate Information

Company was incorporated on Oct, 23, 2002 under the provisions of the companies act, 1956 as a private limited.the company is subsidiary of Merlinhawk Associates Private Limited. Subject is engaged in the business of design, development, marketing and support for high technology avionic products, airbome and ground support equipment, application software, integrated test equipment and test jigs, cable assemblies and other systems and subsystems for aircraft, helicopters, UAVs and other airbome vehicles. Land, marine and space based vehicles for aerospace, defense and civil sectors. The company also provides integrated logistic support and maintainance services of products to its customers.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10549784	10/02/2015	50,000,000.00	THE KARNATAKA BANK LIMITED	OVERSES BRANCH, ST MARKS ROAD, BANGALORE, Karnataka - 560001, INDIA	C43914894
2	10495152	25/03/2014	70,000,000.00	THE KARNATAKA BANK LIMITED	OVERSEAS BRANCH, ST MARKS ROAD, BANGALORE, Karnataka - 560001, INDIA	C04643144
3	10448636	27/08/2013	20,000,000.00	THE KARNATAKA BANK LIMITED	OVERSEAS BRANCH, ST MARKS ROAD, BANGALORE, Karnataka - 560001, INDIA	B84785955
4	10426526	03/05/2013	15,000,000.00	THE KARNATAKA BANK LIMITED	OVERSEAS BRANCH, ST MARKS ROAD, BANGALORE, Karnataka - 560001, INDIA	B75408948
5	10295167	22/06/2011	600,000.00	THE KARNATAKA BANK LIMITED	OVERSEAS BRANCH, ST MARKS ROAD, BANGALORE, Karnataka - 560001, INDIA	B16192544
6	10295169	22/06/2011	650,000.00	THE KARNATAKA BANK LIMITED	OVERSEAS BRANCH, ST MARKS ROAD, BANGALORE, Karnataka - 560001, INDIA	B16193583
7	10046634	23/02/2015 *	190,900,000.00	THE KARNATAKA BANK LIMITED	OVERSEAS BRANCH, ST MARKS ROAD, BANGALORE, Karnataka - 560001, INDIA	C44944544

* Date of charge modification

FIXED ASSETS

Land
Plant and Machinery
Furniture and fixture
Vehicle
Office Equipment
Electrical Installation
Computer

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.67
UK Pound	1	Rs.92.46
Euro	1	Rs.66.33

INFORMATION DETAILS

Information Gathered by :	SVA

Analysis Done by :	DIV

Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

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